wh fnetic pace of technolocal change and the spread of advanced military technology to state and non- state actors pose an increasing challenge to america's military. this is the strategic environment facing the department of defense as it enters a third year of flat or declining budgets. the onset of these resource constraints has already led to significant and ongoing belt- tightening in military modernization, force structure, personnel costs, and overhead expenditures. it has also given us an opportunity to reshape the military and reform defense institutions to better reflect 21st century realities. the process began under the leadership of secretary gates, who canceled or curtailed more than 30 modernization programs and trimmed overhead within the military services and across the defense enterprise. these efforts reduced the department's topline by $78 billion over a five year period, as detailed in the department's fy 2012 budget plan. the realignment continued under secretary panetta, who worked closely with the president and the joint chiefs of staff to craft new defense str